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Hanson PLC (HNS)

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Thursday 02 August, 2001

Hanson PLC

Interim Results

Hanson PLC
2 August 2001


PART 1

Hanson PLC Interim Results 2001

  * Good progress on 2001 strategic objectives
  * Trading profit (pre-goodwill) up 29.7% to £220.5 million (£170.0m)
  * Pre-tax profit (pre-exceptionals) £129.2 million (£131.9m)
  * EPS (pre-goodwill/exceptionals) unchanged at 16.2p
  * Cash generation remains strong with operating cash flow up 58.4% to £
    189.0 million (£119.3m)
  * Gearing reduced to 64.3% (79.1% at June 30, 2000)
  * Interim dividend up 2.3% to 4.45p (4.35p)
  * Further progress expected

Andrew Dougal, chief executive, said: 'Continuing progress is being made in
delivering the benefits of the April 2000 Pioneer acquisition and meeting the
group's strategic objectives. Our key US construction season has several more
months to run, but with overall trading slightly ahead of initial
expectations, the group remains confident that 2001 should be a year of
progress.'


Inquiries:

Justin Read

Hanson PLC

Tel: +44 (0)20 7245 1245


Further information about Hanson can be found at www.hansonplc.com.
Additionally, photographs are available to download at www.newscast.co.uk


Financial Highlights

Profit before tax and exceptional items for the six months to June 30, 2001
was £129.2 million (£131.9m) on turnover totalling £2,041.8 million (£
1,380.9m). Including exceptional items, the profit before tax was £235.6
million (£126.3m). Basic earnings per share were 28.1p (17.5p). Before
goodwill amortisation of £29.4 million (£14.5m) and exceptional items,
earnings per share were 16.2p (16.2p).

This good performance principally reflects a £50.5 million increase in trading
profit pre-goodwill (up 29.7% to £220.5 million), offset by higher goodwill
and higher net interest payable (£36.7 million higher at £58.4 million).
Hanson Building Materials America ('HBMA') performed well, with trading profit
pre-goodwill up 32.0% to £136.5 million. In addition, Hanson Quarry Products
Europe ('HQPE') increased its trading profit pre-goodwill by 31.7% to £52.8
million.

Cash flow from operating activities was £189.0 million, an increase of £69.7
million. Net debt at June 30, 2001 was £1,708.1 million, down from £1,819.2
million at December 31, 2000.


Dividend

An interim dividend of 4.45p (4.35p) for the year to December 31, 2001 will be
paid on September 14, 2001 to shareholders on the register on August 17, 2001.
Hanson ordinary shares will trade ex-dividend from August 15, 2001.


Corporate Strategy

Continuing progress is being made in delivering the benefits of the April 2000
Pioneer acquisition and meeting the group's strategic objectives. Particular
focus has been placed on generating maximum value from the combined
operations. Cost reduction measures, together with price increases to offset
unrecovered fuel cost increases, have been an important part of this process.

As outlined at the beginning of the year, bolt-on acquisition spending has
been reduced during the period, with investments totalling £11.3 million (£
102.6m), including the acquisition of the remaining 50% of the Malaysian
aggregates JV, a UK aggregates recycling business and a quarry in Spain. This
reflects a desire to strengthen the balance sheet during 2001. Over the longer
term, the objective remains to continue to invest in the business through
capital expenditure and bolt-on acquisitions to strengthen market positions
and increase productivity.

Various disposals have been made of operations that were considered non-core
or unlikely to deliver adequate medium term returns. The UK waste management
business was sold in January for £185.0 million. Additionally, HBMA asset
disposals included its Utah operations, a quarry in West Virginia and a brick
plant in Mississippi for a total of £25.8 million. Stand-alone ready-mixed
concrete operations in Andalucia (Spain) have also been sold.

Outlook

With overall trading slightly ahead of initial expectations, the group remains
confident that 2001 should be a year of progress.

HBMA, which is expected to account for over 60% of trading profit this year,
has had an encouraging start to the construction season. Its largest market,
Texas, has performed well. Concrete and cement price increases there are
currently being implemented.

The outlook for HQPE remains good, although significant benefits from the
Government's Ten Year Transport Plan are not expected to materialise before
the end of this year. Progress has been made in reducing costs in Germany and
Israel, which should help offset difficult trading conditions in these
markets.

Hanson Bricks Europe ('HBE') is expecting some uplift in the level of UK brick
demand in the remainder of the year. The impact of UK fuel cost increases is
budgeted to reduce in the second half, as are some of the first half's raw
material-related production issues. The Government's review of the planning
process should improve the supply of land for new houses, but is unlikely to
benefit the short term.

In Australia, there are some signs of stability in the construction market.
Recent news on housing permits suggests the potential for volume improvement
around the end of the year. However, pricing pressure is likely to continue in
the interim and the forthcoming federal election may temporarily slow down the
flow of public infrastructure projects. Hanson Australia's immediate focus
will be on continued cost reduction, implementation of new systems and
improved market penetration.

Economic growth expectations in Hanson Pacific's major markets are currently
being revised downwards by market commentators. This may impact future
performance depending on the extent to which government spending is directed
towards stimulating growth. For the time being, however, internal forecasts
remain unchanged.

As set out at the beginning of the year, Hanson has intensified its focus on
cost and margin control and the spread of best practice. Targeting price
increases to recover higher energy and other costs is part of this process, as
is the continuous review of under-performing and non-strategic assets.

The strong cash flow generated by the operations, together with the
anticipated progress in profits, has slightly improved interest cover
expectations. Bolt-on acquisition activity is expected to increase as
appropriate cover is restored.

Attachments:                  Operations Report
                              Operating Statistics
                              Financial Results

OPERATIONS REPORT

Hanson Building Materials America ('HBMA')

Trading turnover £976.1 million (£640.8m)

Trading profit pre-goodwill £136.5 million (£103.4m)

Trading profit £121.6 million (£94.8m)

HBMA's five operating units were all either ahead of or in line with budget.
Trading profit pre-goodwill rose 32.0% to £136.5 million. Excluding
acquisitions and a beneficial exchange effect, underlying trading profit
increased by 5% and margins by half a percentage point. This was a good
performance, particularly in view of poor first quarter weather, £6.5 million
higher gas costs in the brick operations and significantly higher electricity
costs in California.

Heritage volumes in aggregates were marginally down year on year, -0.8%, while
aggregates prices increased 3.1% on average. Western/Central markets were
stronger than the East in respect of both prices and volumes. In general,
infrastructure related demand is helping to offset softness in the industrial/
commercial segments, while housing is holding up well. HBMA's cost control
programme is progressing in line with objectives set at the beginning of the
year.

The concrete pipe and products division delivered another strong performance.
Recent acquisitions accounted for a 21.8% increase in volumes and have further
strengthened the division's leading market position in the US. With a good
backlog of orders, the outlook for the remainder of the year is positive.

The US brick division again performed well, despite the higher gas costs, and
reported profits pre-goodwill of £10.9 million (£12.4m). A 3.2% volume decline
was offset by average price increases of 4.7%. Commissioning of a new brick
plant in Canada has begun and it should be fully operational by the end of the
year. A reorganisation of the brick operation is underway to improve
operational and administrative efficiencies. With a good order book,
particularly in Texas, the Midwest and Canada, the immediate outlook for the
business remains good.



Hanson Quarry Products Europe ('HQPE')

Trading turnover £607.4 million (£418.0m)

Trading profit pre-goodwill £52.8 million (£40.1m)

Trading profit £48.9 million (£38.7m)

HQPE trading profit pre-goodwill increased 31.7% to £52.8 million. The UK
contributed £46.4 million of this. Excluding acquisitions, HQPE's trading
profit pre-goodwill increased by approximately £4 million and its UK margin by
0.9 percentage points.

Following a weather-affected first quarter, the UK aggregates division had a
stronger second quarter. As a result, first half heritage aggregates volumes
were 3.0% ahead of last year, helped by HQPE's involvement in a number of
major infrastructure contracts in the South and South East of England. The
price increases in March in the UK have contributed to an average aggregates
price increase in the first half of 5.3% compared to last year. This has been
important in offsetting both under-recovery of last year's higher fuel costs
and the impact of higher general input costs this year. In addition,
significant cost reduction measures to help restore margins and improve
efficiency are in progress. With regard to other UK based operations, the
marine dredging business is performing well, but market conditions for
concrete products, except for precast concrete, remain difficult.

On the continent, HQPE predominantly consists of former Pioneer operations.
Spain, currently the largest contributor, continues to benefit from strong
demand, particularly in Madrid, Barcelona and Bilbao. In Germany, the downturn
in the construction market has affected performance. Production and
administrative functions are being rationalised to reduce costs. Cost savings
have improved the Israeli results in what remains a difficult trading
environment.


Hanson Bricks Europe ('HBE')

Trading turnover £114.4 million (£117.4m)

Trading profit pre-goodwill £11.6 million (£16.3m)

Trading profit £11.3 million (£16.1m)


The bulk of HBE's operations are in the UK. Conditions here were difficult,
with the national market now at an all-time low and HBE's volumes falling
4.0%. This was slightly better than the industry overall and market share
therefore is marginally higher, at almost 28%. After a disappointing first
quarter, when wet weather affected both demand and production costs, demand
was slow to pick up. An additional issue has been continuing higher gas costs,
the gross impact of which has been approximately £2.7 million across HBE.
Price increases of 2.7% in the UK have helped offset some of the impact of
higher costs. Additionally, significant capital investment projects at the
Stewartby and King's Dyke plants are being planned to reduce future costs.


Brick volumes in continental Europe were down 3.9% in the first half. Weakness
in Germany continues to affect performance, with a knock-on impact on
neighbouring countries where Hanson is also present.




Hanson Australia

Trading turnover £191.9 million (£91.5m)

Trading profit pre-goodwill £7.3 million (£7.0m)

Trading profit £2.2 million (£5.1m)

Hanson Australia comprises former Pioneer operations. Notwithstanding that the
first half of 2000 included only a two-month contribution from these
operations, trading profit pre-goodwill this year was only £0.3 million up at
£7.3 million. This primarily reflects a 20% decline in ready-mixed concrete
volumes compared to the first half of 2000, together with the knock-on effect
on pricing, logistics and aggregates demand. Initial difficulties encountered
in the introduction of new business systems have also significantly impacted
first-half trading profit.

The decline in ready-mixed concrete volumes, and to a lesser degree aggregates
volumes, reflects the slow-down in construction activity, particularly
residential housing, following the introduction of GST (Goods and Services
Tax) on July 1, 2000 and completion of construction for the Sydney 2000
Olympics. Both of these factors contributed to strong demand in the first half
of last year.

Cost reduction and margin improvement initiatives continue to be implemented.
These include asset sales, organisational restructuring and tight control of
capital expenditure. The new business processes and operating systems
currently being introduced throughout the aggregates and ready-mixed concrete
operations will also help to improve efficiency.


Hanson Pacific

Trading turnover £145.2 million (£53.7m)

Trading profit pre-goodwill £12.3 million (£3.2m)

Trading profit £7.1 million (£0.8m)


Hanson Pacific mainly comprises former Pioneer operations. Trading profit
pre-goodwill of £12.3 million shows a significant improvement over the prior
year period when Pioneer was included for only two months. This was despite
the background of a slowing Asian economy.

Hanson Pacific operates in seven countries, although its principal operations
are in Hong Kong, Malaysia and Singapore, where Hanson is market leader. In
Hong Kong and Malaysia, the product focus is on aggregates, asphalt and
ready-mixed concrete. In Singapore, with no indigenous aggregates production,
Hanson principally produces asphalt and ready-mixed concrete.

Hong Kong is the largest contributor to Hanson Pacific's trading profit. For
much of the period demand here has remained strong.

In Malaysia there have been few signs of underlying market improvement.
However, the April 2001 acquisition of the remaining 50% of the aggregates
joint venture will strengthen Hanson's number one position and provide
opportunities for synergy benefits. A reorganisation of Hanson's Malaysian
operations is underway.

Market conditions in Singapore have been mixed; asphalt performance has been
good, while the ready-mixed concrete market has remained weak.



OPERATING STATISTICS
                                                            6 months to June 30

                                                                       % change

                                                                (2001 vs. 2000)
Hanson Building Materials America

(excludes joint ventures/associates)
Aggregates volumes                                                       +26.7%
Aggregates volumes (excluding acquisitions)                               -0.8%
Aggregates prices (excluding acquisitions)                                +3.1%

Ready-mixed concrete volumes                                            +103.1%
Ready-mixed concrete prices (excluding acquisitions)                      +6.5%

Hot-mix asphalt volumes                                                   -7.8%
Hot-mix asphalt prices (excluding acquisitions)                           +9.6%

Cement volumes                                                            +5.9%
Cement prices                                                             -3.3%

Concrete products volumes                                                +21.8%
Concrete products prices (excluding acquisitions)                         +4.2%

Brick despatches                                                         -3.2%
Brick prices                                                              +4.7%

Hanson Quarry Products Europe

(UK only, excluding marine)
Aggregates volumes                                                       +28.2%
Aggregates volumes (excluding acquisitions)                               +3.0%
Aggregates prices                                                         +5.3%

Asphalt volumes                                                          +15.4%
Asphalt prices                                                            +6.5%

Premix concrete volumes                                                 +103.9%
Premix concrete prices                                                    +5.5%

Hanson Bricks Europe
UK brick despatches                                                       -4.0%
UK brick prices                                                           +2.7%

Continental Europe brick despatches                                       -3.9%
Continental Europe brick prices                                           +0.9%

Continental Europe block despatches                                       -5.7%
Continental Europe block prices                                           +5.7%



HANSON PLC

Page 1

CONSOLIDATED PROFIT AND LOSS ACCOUNT

for the 6 months ended June 30, 2001 and the 12 months ended December 31, 2000


                                                   June      June      December
                                                   2001      2000      2000
                                                   Unaudited Unaudited
                                                   £million  £million  £million
Turnover
Turnover - group and share of turnover of joint      2,041.8   1,380.9  3,417.0
ventures and associates
Less share of turnover of joint ventures             (121.1)    (49.6)  (173.8)
Less share of turnover of associates                  (69.8)    (49.6)  (107.1)
                                                    -------- -------- ---------
                                                     1,850.9   1,281.7  3,136.1
                                                   --------- -------- ---------
Continuing operations                                1,836.8   1,222.2  3,029.3
Acquisitions                                             7.3         -        -
Discontinued                                             6.8      59.5    106.8
                                                   --------- --------- --------
Group turnover                                       1,850.9   1,281.7  3,136.1
Costs and overheads less other income (June 2001   (1,694.5) (1,151.7) (2,775.8)
includes exceptional operating items of £(12.6)m;
June 2000 £(12.3)m; Dec 2000 £(22.7)m)
                                                   --------- -------- ---------
Group operating profit                                 156.4     130.0    360.3
Share of operating profit of joint ventures             14.1       8.0     20.4
Share of operating profit of associates                  7.0       6.0     13.5
                                                   --------- -------- ---------
Operating profit including joint
ventures and associates                                177.5     144.0    394.2
                                                   --------- -------- ---------
Continuing operations                                  176.7     136.5    380.1
Acquisitions                                             0.2         -        -
Discontinued                                             0.6       7.5     14.1
                                                   --------- --------- --------
Operating profit including joint
ventures and associates                                177.5     144.0    394.2
Exceptional items
Profit on disposal of operations                       121.7         -      1.2
Settlement of environmental and related provisions       5.2       4.0      5.7
(Loss) profit on disposal of fixed assets              (7.9)       2.7      4.4
                                                   --------- --------- --------
                                                       119.0       6.7     11.3
Net interest (payable) and similar charges
Net interest payable                                  (58.4)    (21.7)   (91.9)
Unwinding of discount on provisions                    (2.5)     (2.7)    (6.8)
                                                   --------- --------- --------
                                                      (60.9)    (24.4)   (98.7)
                                                   --------- --------- --------
Profit on ordinary activities before taxation          235.6     126.3    306.8

Taxation
Charge for year                                       (39.6)    (36.4)   (90.5)
Exceptional items                                       10.6      28.9     38.3
                                                   --------- --------- --------
                                                      (29.0)     (7.5)   (52.2)
                                                   --------- --------- --------
Profit on ordinary activities after taxation           206.6     118.8    254.6

Dividends
cash - paid                                                -         -   (31.7)
cash - proposed                                       (32.7)    (32.0)   (68.7)
                                                   --------- --------- --------
Transfer to reserves                                   173.9      86.8    154.2
                                                   --------- --------- --------
Earnings per ordinary share/ADS:
- basic                                                28.1p     17.5p    35.9p
- basic before exceptional/goodwill                    16.2p     16.2p    38.2p
- diluted                                              28.0p     17.4p    35.8p
- diluted before exceptional/goodwill                  16.1p     16.1p    38.1p
                                                   ---------------

US dollar equivalent
                                                June       June      December
                                                2001       2000      2000
                                                Unaudited  Unaudited
                                                $million   $million  $million
Turnover
Turnover - group and share of turnover of joint    2,942.4   1,989.9    4,924.2
ventures and associates
Less share of turnover of joint ventures           (174.5)    (71.4)    (250.5)
Less share of turnover of associates               (100.6)    (71.4)    (154.3)
                                                ---------- --------- ----------
                                                   2,667.3   1,847.1    4,519.4
                                                ---------- --------- ----------
Continuing operations                              2,647.0   1,761.4    4,365.5
Acquisitions                                          10.5         -          -
Discontinued                                           9.8      85.7      153.9
                                                ---------- --------- ----------
Group turnover                                     2,667.3   1,847.1    4,519.4
Costs and overheads less other income            (2,441.9) (1,659.7)  (4,000.2)
                                                ---------- --------- ----------
Group operating profit                               225.4     187.4      519.2
Share of operating profit of joint ventures           20.3      11.5       29.4
Share of operating profit of associates               10.1       8.6       19.5
                                                ---------- --------- ----------
Operating profit including joint
ventures and associates                              255.8     207.5      568.1
                                                ---------- --------- ----------
Continuing operations                                254.6     196.7      547.8
Acquisitions                                           0.3         -          -
Discontinued                                           0.9      10.8       20.3
                                                ---------- --------- ----------
Operating profit including joint
ventures and associates                              255.8     207.5      568.1
Exceptional items
Profit on disposal of operations                     175.4         -        1.7
Settlement of environmental and related                7.5       5.8        8.2
provisions
(Loss) profit on disposal of fixed assets           (11.4)       3.9        6.3
                                                ---------- --------- ----------
                                                     171.5       9.7       16.2
Net interest (payable) and similar charges
Net interest payable                                (84.2)    (31.3)    (132.4)
Unwinding of discount on provisions                  (3.6)     (3.9)      (9.8)
                                                ---------- --------- ----------
                                                    (87.8)    (35.2)    (142.2)
                                                ---------- --------- ----------
Profit on ordinary activities before taxation        339.5     182.0      442.1

Taxation
Charge for year                                     (57.1)    (52.4)    (130.4)
Exceptional items                                     15.3      41.6       55.2
                                                ---------- --------- ----------
                                                    (41.8)    (10.8)     (75.2)
                                                ---------- --------- ----------
Profit on ordinary activities after taxation         297.7     171.2      366.9

Dividends
cash - paid                                              -         -     (45.7)
cash - proposed                                     (47.1)    (46.1)     (99.0)
                                                ---------- --------- ----------
Transfer to reserves                                 250.6     125.1      222.2
                                                ---------- --------- ----------
Earnings per ordinary share/ADS:
- basic                                              $2.03     $1.26      $2.59
- basic before exceptional/goodwill                  $1.17     $1.17      $2.75
- diluted                                            $2.02     $1.25      $2.58
- diluted before exceptional/goodwill                $1.16     $1.16      $2.75
                                                --------------


The average exchange rates used for the consolidated profit and loss account
were June 30, 2001 $1.4411 to the £; June 30, 2000 $1.5706 to the £, and
December 31, 2000 $1.5166 to the £.


US dollar equivalents are translated at $1.4411 to the £.


HANSON PLC

Page 2

CONSOLIDATED BALANCE SHEET

at June 30, 2001 and at December 31, 2000

                                                           US dollar equivalent
                                     June    December        June     December
                                     2001        2000        2001         2000
                                Unaudited               Unaudited
                                 £million    £million    $million     $million
Fixed assets
Intangible assets                 1,145.1     1,119.8     1,610.5      1,574.9
Tangible assets                   3,046.4     3,069.6     4,284.4      4,317.1
Investments                         265.3       307.1       373.1        431.9
                              ----------- ----------- -----------  -----------
                                  4,456.8     4,496.5     6,268.0      6,323.9

Current assets
Stocks                              392.3       365.9       551.7        514.6
Debtors                             974.1       811.8     1,370.0      1,141.7
Investments                         425.1       411.9       597.9        579.3
Cash at bank                        870.5       917.2     1,224.3      1,290.0
                              ----------- ----------- ----------- ------------
                                  2,662.0     2,506.8     3,743.9      3,525.6

Prepayments and accrued
income
Amounts due from insurers for
Koppers liabilities (see            165.2       166.9       232.3        234.7
below)
                                  2,827.2     2,673.7     3,976.2      3,760.3
Creditors - due within one
year
Debenture loans                     842.1       950.4     1,184.3      1,336.6
Bank loans and overdrafts           206.9       563.8       291.0        792.9
Trade creditors                     385.7       360.1       542.5        506.5
Other creditors                     513.4       442.1       722.0        621.8
Dividends                            32.7        68.7        46.0         96.6
                              ----------- ----------- ----------- ------------
                                  1,980.8     2,385.1     2,785.8      3,354.4
                              ----------- ----------- ----------- ------------
Net current assets                  846.4       288.6     1,190.4        405.9
                              ----------- ----------- ----------- ------------
Total assets less current         5,303.2     4,785.1     7,458.4      6,729.8
liabilities
                              ----------- ----------- ----------- ------------
Creditors - due after one
year
Debenture and other loans         1,677.7     1,583.5     2,359.5      2,227.0
Bank loans                          277.0        50.6       389.6         71.2
                              ----------- ----------- ----------- ------------
                                  1,954.7     1,634.1     2,749.1      2,298.2
Provisions for liabilities
and charges
Koppers liabilities
transferred to
insurers (see above)                165.2       166.9       232.3        234.7
Provisions for other                528.3       566.8       743.0        797.2
liabilities

Capital and reserves
Called up share capital           1,471.1     1,470.3     2,069.0      2,067.8
Share premium account             1,492.4     1,492.2     2,098.9      2,098.6
Other reserves                      216.3       216.3       304.2        304.2
Profit and loss account           (524.8)     (761.5)     (738.1)    (1,070.9)
                              ----------- ----------- ----------- ------------
Equity shareholders' funds        2,655.0     2,417.3     3,734.0      3,399.7
                              ----------- ----------- ----------- ------------
                                  5,303.2     4,785.1     7,458.4      6,729.8
                              ----------- ----------- ----------- ------------
Net Debt                        (1,708.1)   (1,819.2)   (2,402.2)    (2,558.4)
Net assets per ordinary share      361.0p      328.8p
Net assets per ADS                                         $25.38       $23.12
                              -----------             -----------

The exchange rates used for the consolidated balance sheet were June 30, 2001,
$1.4064 to the £ and December 31, 2000, $1.4938 to the £.

US dollar equivalents are translated at $1.4064 to the £.

Approved by the Board of Directors on August 2, 2001

Christopher Collins, Chairman

Jonathan Nicholls, Finance Director



HANSON PLC

Page 3

SUMMARY CONSOLIDATED CASH FLOW STATEMENT

for the 6 months ended June 30, 2001

unaudited
                                                           US dollar equivalent
                                             June     June      June       June
                                             2001     2000      2001       2000
                                         £million £million  $million   $million
Profit from operations                      177.5    144.0     255.8      207.5
Joint ventures and associates'             (21.1)   (14.0)    (30.4)     (20.2)
operating profit
Amortisation of goodwill                     29.4     14.5      42.4       20.9
Depreciation                                 95.3     67.9     137.3       97.9
Depletion                                    20.2     16.9      29.1       24.4
Provision utilisation                      (13.2)   (14.9)    (19.0)     (21.5)
Loss (profit) on sales of tangible            1.2    (0.3)       1.7      (0.4)
fixed assets
Decrease (increase) in stocks                 2.1   (10.0)       3.0     (14.4)
Increase in debtors                       (126.1)   (77.7)   (181.7)    (112.0)
Increase (decrease) in creditors             23.7    (7.1)      34.2     (10.2)
                                        --------- -------- ---------  ---------
Net cash inflow from operating              189.0    119.3     272.4      172.0
activities
                                        --------- -------- --------- ----------
Dividends received from joint ventures        7.3     14.0      10.5       20.2
and associates
                                        --------- -------- --------- ----------
Returns on investments and servicing of    (64.7)   (23.6)    (93.2)     (34.0)
finance
                                        --------- -------- --------- ----------
Taxation                                   (19.0)   (11.8)    (27.4)     (17.0)
Capital expenditure and financial       --------- -------- --------- ----------
investments
Capital expenditure                        (76.2)   (95.4)   (109.8)    (137.5)
Disposal of fixed assets                     26.6      6.1      38.4        8.8
Purchase of fixed asset investments         (1.1)        -     (1.6)          -
Disposal of fixed asset investments             -     15.7         -       22.6
                                        --------- -------- --------- ----------
Net cash outflow from capital              (50.7)   (73.6)    (73.0)    (106.1)
expenditure and financial investment
Acquisitions and disposals              --------- -------- --------  ----------
Cash in acquired, subsidiary                  4.2     21.7       6.0       31.3
undertakings
Acquisition of subsidiary undertakings     (11.3) (1,264.3)    (16.3)  (1,822.0)
Disposal of subsidiary undertakings         185.0     22.3     266.6       32.1
                                        --------- -------- ---------- ----------
Net cash inflow (outflow) from              177.9 (1,220.3)     256.3  (1,758.6)
acquisitions and disposals
                                        --------- -------- ---------- ----------
Dividends paid                             (68.7)   (60.0)    (99.0)     (86.5)
                                        --------- -------- ---------- ----------
Management of liquid resources               60.4    986.4      87.0    1,421.5
                                        --------- -------- ---------- ----------
Net cash inflow (outflow) before            231.5  (269.6)     333.6    (388.5)
financing
Financing
Issue of ordinary share capital               1.0      1.5       1.4        2.2
Net increase in debt                        114.6    338.3     165.2      487.5
                                        --------- -------- --------- -----------
Net cash inflow from financing              115.6    339.8     166.6      489.7
                                        --------- -------- --------- ----------
Net cash inflow after financing             347.1     70.2     500.2      101.2
                                        --------- -------- --------- ----------



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

for the 6 months ended June 30, 2001

unaudited
                                                          US dollar equivalent
                                           June      June      June       June
                                           2001      2000      2001       2000
                                       £million  £million  $million   $million

Profit on ordinary activities after       206.6     118.8     297.7      171.2
taxation
Currency translation differences on        37.4      62.9      53.9       90.6
foreign net equity
Total recognised gains and losses     --------- --------- --------- ----------
recognised
since last annual report                  244.0     181.7     351.6      261.8
                                      --------- --------- --------- ----------

The average exchange rates for the summary consolidated cash flow statement
and the statement of total recognised gains and losses were June 30, 2001,
$1.4411 to the £, and June 30, 2000 $1.5706 to the £.

US dollar equivalents are translated at $1.4411 to the £.



HANSON PLC

Page 4

SEGMENT INFORMATION

for the 6 months ended June 30, 2001

unaudited

                                              Profit          Turnover
                                                June     June     June     June
                                                2001     2000     2001     2000
                                            £million £million £million £million
Operating profit and turnover including
joint ventures & associates
Hanson Building Materials America              121.6     94.8    976.1    640.8
Hanson Quarry Products Europe                   48.9     38.7    607.4    418.0
Hanson Bricks Europe                            11.3     16.1    114.4    117.4
Hanson Australia                                 2.2      5.1    191.9     91.5
Hanson Pacific                                   7.1      0.8    145.2     53.7
                                            -------- -------- -------- --------
Trading profit and turnover                    191.1    155.5  2,035.0  1,321.4
Property and other income                        6.5      1.6        -        -
Central expenses                               (8.1)    (8.3)        -        -
Discontinued                                     0.6      7.5      6.8     59.5
Operating exceptional
Items                                         (12.6)   (12.3)        -        -
                                            -------- -------- -------- --------
                                               177.5    144.0  2,041.8  1,380.9
By geographical location                    -------- -------- -------- --------
North America                                  120.9     94.8    976.1    640.8
Europe                                          59.3     48.1    721.8    535.4
Australia                                        2.2      5.1    191.9     91.5
Asia                                             7.1      0.8    145.2     53.7
Discontinued                                     0.6      7.5      6.8     59.5
Operating exceptional
items                                         (12.6)   (12.3)        -        -
                                            -------- -------- -------- --------
                                               177.5    144.0  2,041.8  1,380.9
                                            -------- -------- -------- --------


                                                                  US Equivalent
                                                              dollar
                                            Profit          Turnover
                                              June     June     June       June
                                              2001     2000     2001       2000
                                          $million $million $million   $million
Operating profit and turnover including
joint ventures & associates
Hanson Building Materials America            175.2    136.6  1,406.7      923.5
Hanson Quarry Products Europe                 70.5     55.8    875.3      602.3
Hanson Bricks Europe                          16.3     23.2    164.9      169.1
Hanson Australia                               3.2      7.3    276.5      131.9
Hanson Pacific                                10.2      1.2    209.2       77.4
                                          -------- -------- -------- ----------
Trading profit and turnover                  275.4    224.1  2,932.6    1,904.2
Property and other income                      9.4      2.3        -          -
Central expenses                            (11.7)   (12.0)        -          -
Discontinued                                   0.9     10.8      9.8       85.7
Operating exceptional
Items                                       (18.2)   (17.7)        -          -
                                          -------- --------- ------- ----------
                                             255.8    207.5  2,942.4    1,989.9
By geographical location                  -------- -------- -------- ----------
North America                                174.2    136.6  1,406.7      923.5
Europe                                        85.5     69.3  1,040.2      771.4
Australia                                      3.2      7.3    276.5      131.9
Asia                                          10.2      1.2    209.2       77.4
Discontinued                                   0.9     10.8      9.8       85.7
Operating exceptional
Items                                       (18.2)   (17.7)        -          -
                                          -------- -------- -------- ----------
                                             255.8    207.5  2,942.4    1,989.9
                                          -------- -------- -------- ----------


Trading profit before goodwill                   June 2000  June 2000 June 2000

Amortisation
                                                     Gross   Goodwill       Net
                                                  £million   £million  £million
Hanson Building Materials America                    136.5       14.9     121.6
Hanson Quarry Products Europe                         52.8        3.9      48.9
Hanson Bricks Europe                                  11.6        0.3      11.3
Hanson Australia                                       7.3        5.1       2.2
Hanson Pacific                                        12.3        5.2       7.1
                                               ----------- ---------- ---------
Trading Profit                                       220.5       29.4     191.1
                                               ----------- ---------- ---------

Group turnover before share of joint        June 2000   June 2000     June 2000
ventures and associates
                                                Gross       Joint         Group

                                             Turnover  ventures &      Turnover

                                                       associates
                                             £million    £million      £million
Hanson Building Materials America               976.1        48.0         928.1
Hanson Quarry Products Europe                   607.4        51.9         555.5
Hanson Bricks Europe                            114.4           -         114.4
Hanson Australia                                191.9        67.9         124.0
Hanson Pacific                                  145.2        23.1         122.1
Discontinued                                      6.8           -           6.8
                                         ------------ -----------  ------------
                                              2,041.8       190.9       1,850.9
                                         ------------ -----------  ------------
By geographical location
North America                                   976.1        48.0         928.1
Europe                                          721.8        51.9         669.9
Australia                                       191.9        67.9         124.0
Asia                                            145.2        23.1         122.1
Discontinued                                      6.8           -           6.8
                                         ------------ ----------- -------------
                                              2,041.8       190.9       1,850.9
                                         ------------ ----------- -------------


Trading profit before goodwill              June 2000  June 2000      June 2000

Amortisation
                                                Gross   Goodwill            Net
                                             £million   £million       £million
Hanson Building Materials America               103.4        8.6           94.8
Hanson Quarry Products Europe                    40.1        1.4           38.7
Hanson Bricks Europe                             16.3        0.2           16.1
Hanson Australia                                  7.0        1.9            5.1
Hanson Pacific                                    3.2        2.4            0.8
                                           ---------- ----------  -------------
Trading Profit                                  170.0       14.5          155.5
                                           ---------- ----------  -------------
Group turnover before share of joint      June 2000   June 2000       June 2000
ventures and associates
                                              Gross       Joint           Group

                                           Turnover  Ventures &        Turnover

                                                     associates
                                           £million    £million        £million
Hanson Building Materials America             640.8        17.0           623.8
Hanson Quarry Products Europe                 418.0        38.6           379.4
Hanson Bricks Europe                          117.4           -           117.4
Hanson Australia                               91.5        31.5            60.0
Hanson Pacific                                 53.7        12.1            41.6
Discontinued                                   59.5           -            59.5
                                         ---------- -----------   -------------
                                            1,380.9        99.2         1,281.7
                                         ---------- -----------  --------------
By geographical location
North America                                 640.8        17.0           623.8
Europe                                        535.4        38.6           496.8
Australia                                      91.5        31.5            60.0
Asia                                           53.7        12.1            41.6
Discontinued                                   59.5           -            59.5
                                         ---------- -----------    ------------
                                            1,380.9        99.2         1,281.7
                                         ---------- -----------     -----------



HANSON PLC

Page 5

SEGMENT INFORMATION (continued)

for the 6 months ended June 30, 2001

unaudited

Group operating profit before share of joint     June 2000  June 2000 June 2000
ventures and associates
                                                     Gross      Joint     Group

                                                 Operating ventures & Operating

                                                    profit associates    Profit
                                                  £million   £million  £million

Hanson Building Materials America                    121.6        8.6     113.0
Hanson Quarry Products Europe                         48.9        7.9      41.0
Hanson Bricks Europe                                  11.3          -      11.3
Hanson Australia                                       2.2        5.6     (3.4)
Hanson Pacific                                         7.1      (1.0)       8.1
Central items                                        (1.6)          -     (1.6)
Discontinued                                           0.6          -       0.6
Operating exceptional items                         (12.6)          -    (12.6)
                                                ---------- ---------- ---------
                                                     177.5       21.1     156.4
                                                ---------- ---------- ---------
By geographical location
North America                                        121.6        8.6     113.0
Europe                                                60.2        7.9      52.3
Australia                                              2.2        5.6     (3.4)
Asia                                                   7.1      (1.0)       8.1
Central items                                        (1.6)          -     (1.6)
Discontinued                                           0.6          -       0.6
Operating exceptional items                         (12.6)          -    (12.6)
                                                ----------- --------- ---------
                                                     177.5       21.1     156.4
                                                ----------- --------- ---------

Group operating profit before share of joint     June 2000  June 2000 June 2000
ventures and associates
                                                     Gross      Joint     Group

                                                 Operating ventures & Operating

                                                    profit associates    Profit
                                                  £million   £million  £million
Hanson Building Materials America                     94.8        4.6      90.2
Hanson Quarry Products Europe                         38.7        5.6      33.1
Hanson Bricks Europe                                  16.1          -      16.1
Hanson Australia                                       5.1        3.7       1.4
Hanson Pacific                                         0.8        0.1       0.7
Central items                                        (6.7)          -     (6.7)
Discontinued                                           7.5          -       7.5
Operating exceptional items                         (12.3)          -    (12.3)
                                                ---------- ---------- ---------
                                                     144.0       14.0     130.0
                                                ---------- ---------- ---------
By geographical location
North America                                         94.8        4.6      90.2
Europe                                                54.8        5.6      49.2
Australia                                              5.1        3.7       1.4
Asia                                                   0.8        0.1       0.7
Central items                                        (6.7)          -     (6.7)
Discontinued                                           7.5          -       7.5
Operating exceptional items                         (12.3)          -    (12.3)
                                                ---------- ---------- ---------
                                                     144.0       14.0     130.0
                                                ----------  --------- ---------



The average exchange rates used for the segment information were June 30,
2001, $1.4411 to the £; and June 30, 2000, $1.5706 to the £.


US dollar equivalents are translated at $1.4411 to the £.


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